TW for Family

Why Total Wealth for families?

Often families do not understand the inherent risks in “Family Wealth”. A lot is at stake for families world over. The focus is mainly on “Financial Wealth” of families.  It does not bring out the “total needs” of a family and plan the financial aspects accordingly.

Recently, over 100 executiives who attended our Leadership Training with Total Wealth programmes agreed that planning for “Family Wealth” is important to other aspects of Total Wealth and career progression. Interestingly, only 3 out of 100 executives had even a vague idea about planning for Family Wealth.

As one of the most successful financial managers confided “My high net worth clients do not need pure financial planning really, because they have enough to retire on for this generation and, in some cases, for the next as well. What they really need is what you call Total Wealth Planning. I have to be more than a financial planner to satisfy these clients.”

Even the risk management is different with Total Wealth Management. The risks are inherent in all four sections of the Total Wealth Quadrant (TWQ)™ but we often do risk profiling based on financial wealth. Traditional risk profiling does not take into account the health and family risks. Spiritual or “inner wealth” may also have risks. Life is not about “financials” only. Life is also about relationships and living and the scarce resource for most of us is time.

We have to optimise everything around time. This approach is more robust not only in Total Wealth terms but also in financial wealth terms. It brings all key drivers of life under the umbrella of Total Wealth. Once you learn how to view wealth through the prism of Total Wealth it helps you to embrace a more balanced and fulfilling approach to wealth management including financial wealth management.

The approach is agile and flexible. It can be used in “getting to know the family” better. Do you know your family well?